tech
February 5, 2026
This software ETF is in freefall. How to catch the bottom using charts
The iShares Expanded Tech-Software Sector ETF (IGV) is about to notch its eighth losing day, but there’s a right way and a wrong way to play a potential bounce.

TL;DR
- The iShares Expanded Tech-Software Sector ETF (IGV) has dropped 30%, offering a swing trade opportunity.
- Instead of investing all at once, 'nibble' into the trade by setting buy limits at different price levels.
- Historical price levels and momentum indicators are key for identifying entry points.
- Support levels are observed around $77 and just below $80.
- An extremely oversold condition is indicated by RSI readings under 30.
- Expect a quick snapback rally rather than a full V-bottom; take profits quickly.
- Upside targets for the snapback rally are in the upper $80s, $90, and $95.
- If the price breaks below $75, consider it a longer-term trade.
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